What Tactics Do Insurance Companies Try To Use To Undervalue Or Deny Property Damage Claims?
Insurance companies will do everything in their power to undervalue or deny property damage claims. They will hire third-part adjusters and engineers, as well as pay people, to bolster their denial for a claim. There is a saying that we use to describe the most common insurance company tactic employed: “Delay, deny, defend.” Delay the initial coverage determination as long as possible, deny the claim based on any number of vague, overbroad coverage exclusions, and then hire a lawyer mill to defend the claim and bog down the insured in litigation with as much paperwork as necessary to slow down the process. Insurance companies are also known to throw out as many provisions in the polices that they believe could attach to a claim with the hope that it will stick. There are so many different ways that insurance companies can go about undervaluing or underpaying claims, I am constantly surprised by the things I see insurance companies do on a daily basis that are obviously wrong and against the law.
What Is The 25% Rule?
The Florida Building Code states that if 25% or more of a roof needs to be repaired, then the entire roof needs to be replaced. It’s common for an insurance company to look at a loss and say that the roof could be fixed by replacing or repairing just a few shingles. Typically, an estimate for a repair is very low. And oftentimes, it is under the deductible. In actuality, more often than not, 25% of the roof needs to be repaired: As such, the roofer can pull the permit to get the job done. Also, worth considering is that the repairs are required by Florida Building Code and most policies to match the aesthetic of the undamaged property. If the work cannot be done in a way that matches the rest of the property, a full replacement is warranted.
Do I Need A Public Adjuster?
Public adjusters can be very helpful with resolving claims. However, due to Florida’s statute 627.428, as a home or building owner, you are entitled to an attorney who in most cases will do the work for free or charge much less than what a public adjuster will charge for the same thing. Also, if a public adjuster cannot resolve a case pre-suit, the case will have to be litigated and the public adjuster will still be entitled to the percentage of the claim that their contract entitles them to. Whereas a law firm, such as Payne Law, could handle the case pre-suit for a small percentage. Once the suit is filed, recovery would be pursuant to statute 627.428, and the attorney’s fees and costs will be billed directly to the insurance carrier, and not come out of the money intended for the homeowner.
Can My Carrier Drop Me If I File A Claim?
Carriers can drop clients or cancel policies at any time for any reason. However, there is a state statute that says, “Carriers cannot penalize claimants by dropping them because of a claim that was recently filed.” So, while insurers can drop any one at any time, there are limits. If it can be proven that dropping you was done in retaliation, there could potentially be a bad faith claim against the carrier.
Will Filing A Claim Make My Rates Go Up?
Anyone who is a property owner in Florida knows that insurance rates continually go up. They seem to keep going up with no explanation. Carriers are not technically allowed to raise your rates specifically because a claim has been filed. However, they can raise rates if they want to raise them. As a consumer, you always have the right to shop around and find a new carrier.
Filing a claim may or may not make your rates go up. However, a successful claim that, such as a roof repair, could potentially lower your rates.
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